Category: Stock Market

ASX 200 healthcare shares are in the red with the rest of the market on Friday.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 1.53% while the S&P/ASX 200 Index (ASX: XJO) is down 0.53%. This follows a subdued session on Wall Street overnight after yesterday’s exuberance.

Here, we canvas expert opinions on three of the largest and most popular ASX 200 healthcare stocks on the market today.

Expert verdicts on 3 top ASX 200 healthcare shares

CSL Ltd  (ASX: CSL)

CSL is the biggest ASX 200 healthcare share by far, with a market capitalisation of $138.67 billion.

The CSL share price is $281.38, down 1.94% at the time of writing and down 7.5% over the past 12 months.

Jed Richards of Shaw and Partners has a buy rating on CSL shares.

He told The Bull this week:

This well managed blood products company offers compelling long-term tailwinds.

CSL is steadily growing its dividend stream. The company usually under-promises and over-delivers when it comes to profit. The stock has underperformed on the back of a slower recovery in margins.

Also behind a weaker share price was a phase 3 study which found its CSL112 drug was unable meet its primary efficacy endpoint of reducing the risk of major adverse cardiovascular events in patients at 90 days following a first heart attack.

The recent share price presents an attractive entry level for investors.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is the fifth largest ASX 200 healthcare stock with a market cap of $12.99 billion.

The Sonic Healthcare share price is $26.99, down 0.19% now and down 24.4% over the past 12 months.

Toby Grimm of Baker Young has a hold rating on Sonic Healthcare shares.

Grimm says:

Australia’s largest pathology testing firm remains out of favour as it loses prior windfall COVID-19 revenues amid an elevated operating cost environment.

However, we see fiscal year 2024 as the low point for earnings. Moving forward, we expect growth across its global core business as a prime reason to consider holding the stock.

Resmed CDI (ASX: RMD)

Resmed is the third biggest ASX 200 healthcare share with a market cap of $21.12 billion.

The Resmed share price is $32.99, down 0.33% now and down 3.74% over the past 12 months.

Grimm has a sell rating on Resmed shares.

He explains:

The sleep apnoea device maker delivered impressive third quarter results in fiscal year 2024. RMD’s share price has surged relative to the market and its peers.

While long term growth is likely, the impact from new weight loss drugs remains uncertain, so we suggest investors consider reducing exposure and cashing in some gains.

The post Buy, hold or sell these 3 ASX 200 healthcare shares: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is down 0.34% in Friday morning trade, but that’s not holding back this surging ASX lithium share.

Shares in the company – which is focused on delivering the world’s first integrated renewable energy and zero carbon lithium project – closed yesterday trading for $4.76. In earlier trade, shares were changing hands for $5.38 apiece, up 13.0%.

At the time of writing, shares have retraced a touch, trading for $5.28, putting the ASX lithium share up 10.9% for the day.

Any guesses?

If you said Vulcan Energy Resources Ltd (ASX: VUL), give yourself a virtual gold star.

Here’s what’s got investors excited today.

ASX lithium share lifts on financing progress

The Vulcan Energy share price is surging today following an update on the company’s financing process.

Phase one of the two-phase financing process is now complete. Vulcan said it had received significant interest from strategic and financial investors, commercial banks, the European Investment Bank (EIB) and “major government-backed export credit agencies”.

The ASX lithium share said it had formally launched the second and final phase of its project-level debt and equity funding package for its integrated renewable energy and Zero Carbon Lithium Project, located in Germany.

With the support of global bank BNP Paribas, Vulcan has been running a two-phase debt and equity financing process to secure a 65% to 35% mix of debt and equity.

The formal debt launch package was issued today. Vulcan said it was entering formal discussions with four international banks – ABN-AMRO, ING, NATIXIS and UNICREDIT – and four export credit agencies that had expressed in-principle and non-binding interest.

The ASX lithium share said it was receiving continued support from the EIB. And it’s applied for additional public funding through several grant schemes.

The project-level financing program remained on schedule for completion by the end of 2024.

Vulcan reported that it is also launching the second phase of its project-level equity financing process.

What did management say?

Commenting on the financing progress that’s sending the ASX lithium share soaring today, Vulcan CEO Cris Moreno said this marked “a key milestone on our path to becoming Europe’s first fully integrated carbon-neutral lithium producer”.

Moreno added:

The high-quality nature of respondents in the first phase of our finance process is a strong signal of confidence in both our team’s ability to deliver a world class project, and the credentials of Vulcan’s integrated renewable energy and Zero Carbon Lithium Project, to enable a green energy and mobility transition for Europe.

This is an exciting period for the company, and we look forward to entering the formal discussion stage of our finance process with such exceptional and well aligned financing partners.

Vulcan Energy share price snapshot

While most ASX lithium shares have struggled this year, Vulcan Energy’s share price has now soared a whopping 88% in 2024.

The post Guess which ASX lithium share just leapt 13% on major financing news! appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank stock smashing the benchmark on Friday as a key metric strengthens
• Is now the time to buy this high-yielding ASX dividend stock?
• Looking to retire? Buy these ASX dividend shares for passive income
• Here are the 2 ASX shares I might buy next
• Buy Rio Tinto and these ASX 200 dividend shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in S&P/ASX 200 Index (ASX: XJO) bank stock Bendigo and Adelaide Bank Ltd (ASX: BEN) are leaping higher today.

Bendigo Bank shares closed yesterday trading for $9.92. In morning trade on Friday, shares are swapping hands for $10.38 apiece, up 4.6%.

For some context, the ASX 200 is down 0.2% at this same time.

Here’s why Bendigo Bank stock is smashing the benchmark today.

ASX 200 bank stock lifts off on increased margins

The Bendigo Bank share price is soaring after the company released a trading update for the 10 months through 30 April.

The ASX 200 bank stock reported unaudited cash earnings of roughly $464 million for the 10 months. That’s down 2.3% on the prior corresponding period.

Likely spurring investor interest, the bank’s net interest margin (NIM) – which measures the difference between its lending rates and borrowing rates – increased since it reported its half year results.

NIM post revenue share arrangements came in at 1.87%, up from 1.83% reported in 1H FY 2024. The bank added that its April exit NIM was higher than the year to date average.

Also likely spurring investor interest is the low credit expense levels Bendigo Bank reported across all of its portfolios.

What did management say?

Commenting on the 10-month results sending the ASX 200 stock surging today, CEO Marnie Baker said:

At our half year results in February we reiterated our commitment to managing the business for long term value. We have continued our focus on disciplined growth and prudent management of our costs.

The margin considerations we outlined in February have helped support a year-to-date margin of 1.87% post revenue share. We look forward to showcasing our growth engines at our Investor Day on 23 May 2024.

How has the ASX 200 bank stock been tracking?

With this morning’s intraday gains factored in, the Bendigo Bank share price is up an impressive 21% since this time last year. Most of those gains have been delivered over the past six months.

Atop the strong share price gains, the ASX 200 bank stock also pays some juicy dividends.

Over the past year, Bendigo Bank paid a final dividend of 32 cents per share on 29 September and an interim dividend of 30 cents per share on 26 March. At the current share price that equates to a fully franked trailing yield of 6.0%.

And if we add those dividends back into the share price, the accumulated value of the ASX 200 bank stock is up more than 28% in 12 months.

The post ASX 200 bank stock smashing the benchmark on Friday as a key metric strengthens appeared first on The Motley Fool Australia.

More reading

• Is now the time to buy this high-yielding ASX dividend stock?
• Looking to retire? Buy these ASX dividend shares for passive income
• Here are the 2 ASX shares I might buy next
• Buy Rio Tinto and these ASX 200 dividend shares
• 2 of the best ASX 200 blue chip shares to buy in May

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Step One Clothing Ltd (ASX: STP) has drifted lower over the last several weeks, as the chart below shows. I’m going to examine whether it’s the right time to invest in this business.

Step One describes itself as a leading direct-to-consumer online retailer of innerwear. It says its underwear is “high quality, organically grown and certified, sustainable, and ethically manufactured”.

The Step One share price’s decline of more than 20% started around the time that Step One founder and CEO Greg Taylor sold 313,500 shares to bring James Spithill (a winner of two Americas Cups) onto the share register.

Is this a good time to invest in the ASX dividend stock?

I love investing in growing ASX dividend shares that are priced cheaper, just like we’re seeing with Step One.

The FY24 first-half result showed a number of good financial metrics. Revenue grew by 25.5% to $45.1 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 35.6% to $10.1 million.

The gross profit margin grew from 80.7% to 81.2%, and the average order value (AOV) increased by 4.7% to $94.47.

Step One’s balance sheet is in a good state, with a closing cash balance of $43.9 million and no debt.

One of the most compelling things about the business’s future is that it’s growing rapidly in the UK and the US, which have much bigger populations than Australia (where it generates most of its revenue). HY24 UK revenue increased 38% to $14.6 million, and US revenue jumped 256% to $4.1 million.

If Step One can keep growing in the UK and US, then the business looks like it has a very exciting future.

The company is working on a number of things in FY24, including growing the women’s line, expanding its partnerships with retailers and other organisations, taking the women’s lines to the US, investing in its capabilities and products, and continuing to improve the customer experience.

ASX dividend stock valuation and yield

The Step One share price is still up more than 300% over the past year, so it’s not exactly trading at a 52-week low.

However, the company is at a reasonable valuation in my opinion, considering how much global potential it has. It’s valued at 21x FY25’s estimated earnings with a forecast FY25 grossed-up dividend yield of 6.7%.

This seems like the type of business that can deliver significant economies of scale benefits. I’m expecting profit margins to grow over the longer term. I also think Step One can easily expand to other countries, such as Canada, giving it a longer growth runway.

I think the ASX dividend stock is a good long-term buy at this level.

The post Is now the time to buy this high-yielding ASX dividend stock? appeared first on The Motley Fool Australia.

More reading

• How ASX growth shares can become top dividend stocks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re building a retirement portfolio, then owning some ASX dividend shares that provide a decent source of passive income is always a good idea.

But which ones could be quality options this month? Let’s take a look at three for income investors to consider now:

APA Group (ASX: APA)

When looking for ASX passive income options, it’s always good to find stable businesses with the ability to grow their earnings and dividends.

Well, energy infrastructure company certainly ticks these boxes. Its strong business model has allowed the company to increase its dividend each year for almost 20 years.

The good news is that Macquarie feels confident this trend will continue. It is forecasting dividend increases to 56 cents per share in FY 2024 and 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.82, this equates to 6.3% and 6.5% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

Aurizon Holdings Ltd (ASX: AZJ)

Another ASX passive income stock for investors to consider buying is Aurizon.

It plays a key role in Australia’s supply chain. It transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers and industry with international and domestic markets.

Ord Minnett thinks it would be a great option for income investors. Particularly given that a sizeable dividend increase could be on the cards next year.

It is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.74, this will mean yields of 4.75% and 6.5%, respectively.

Ord Minnett currently has an accumulate rating and $4.70 price target on the company’s shares.

Endeavour Group Ltd (ASX: EDV)

As the leading company in alcohol retail, Dan Murphy’s owner Endeavour Group could be a great option for passive income from the ASX.

Goldman Sachs certainly believes this is the case. It likes its market leadership position and the defensive nature of the alcohol retail market.

As for income, it is forecasting fully franked dividends of approximately 22 cents per share in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.21, this will mean dividend yields of 4.2% for both years.

The broker also sees plenty of room for its shares to charge higher from where they trade today, It currently has a buy rating and $6.20 price target on them.

The post Looking to retire? Buy these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a while since I initiated a new position in my ASX share portfolio. Sure, I’ve topped up a couple of my favourite existing positions in the past few months. But I haven’t found any new investments I’ve liked in a while now. At least not enough to prompt enough conviction to part with my own money.

However, that might change very soon. Two investments on the ASX have caught my eye in recent weeks, and there’s a good chance that my next ASX buy will be one of them.

The 2 ASX shares that I might buy next

Infratil Ltd (ASX: IFT)

Infratil is a rather unusual ASX share. It is a New Zealand-based conglomerate similar to Washington H. Soul Pattinson and Co Ltd (ASX: SOL) in that it owns a vast portfolio of underlying assets that it manages on behalf of its shareholders. In Infratil’s case, these are mostly private investments in the renewable energy, infrastructure and healthcare spaces.

Infratil has been around for a very long time (120 years). Over this period, it has consistently brought it home for shareholders, targeting a total return rate of 11-15% per annum.

It has also delivered on this, with the company reporting that investors have enjoyed a total return (assuming dividends are reinvested) of 21.4% per annum over the 10 years to 29 February 2024.

This track record, combined with Infratil’s defensive yet diverse portfolio of investments, indicates a high level of quality to me. As such, I can see myself adding this company to my ASX share portfolio in the near future.

Regal Investment Fund (ASX: RF1)

The Regal Investment Fund is a listed investment trust (LIT) on the ASX. It’s a fairly complicated setup comprising stakes in a number of other investments provided by its owner, Regal Partners Ltd (ASX: RPL).

These investments mostly consist of ‘alternative assets’, including water entitlements, a long-short strategy, private credit and resources royalties.

This LIT is designed to deliver meaningful, risk-adjusted returns with limited correlations to the broader share market. It has notched up some impressive performance wins since listing in 2019, achieving an average of 27.2% per annum over the four years to 30 April and 19.3% per annum since inception.

I like this investment from a diversification view and appreciate its rather stunning past returns. Whilst this LIT doesn’t come cheap (charging 1.5% per annum in fees as well as a performance levy on returns above the cash rate), it’s still on my watchlist right now.

If the Regal Investment Fund can keep up its impressive performance track record, it might find itself in my ASX share portfolio.

The post Here are the 2 ASX shares I might buy next appeared first on The Motley Fool Australia.

More reading

• Buy Rio Tinto and these ASX 200 dividend shares
• 2 of the best ASX 200 blue chip shares to buy in May
• Buy one, sell the other: Goldman’s verdict on these 2 ASX 200 travel shares
• 5 things to watch on the ASX 200 on Friday
• How much could a $10,000 investment in Woodside shares be worth in 12 months?

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors that are on the lookout for some ASX 200 dividend shares to buy for their income portfolio may want to consider the three listed below.

They have been named as buys and tipped to offer above-average dividend yields in the near term. Here’s what you need to know about them:

IPH Ltd (ASX: IPH)

The first ASX 200 dividend share to look at is IPH. It is an international intellectual property (IP) services group with a network of member firms working throughout ten IP jurisdictions and servicing clients in more than 25 countries.

The team at Goldman Sachs is positive on the company. It believes it has a positive outlook thanks to organic growth and defensive earnings.

Its analysts are expecting this to support the payment of fully franked dividends per share of 34 cents in FY 2024 and 37 cents in FY 2025. Based on the current IPH share price of $6.11, this represents yields of 5.55% and 6%, respectively.

Goldman has a buy rating and $8.70 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend share that could be a buy right now according to Goldman Sachs is Rio Tinto.

It is of course one of the world’s largest miners. It produces metals and minerals that are found everywhere in everyday life. This includes aluminium for cars, copper for renewable energy technologies, iron ore for the steel, and lithium for electric vehicles.

Goldman Sachs sees value in the miner’s shares at current levels and expects some great dividend yields.

In respect to the latter, the broker is expecting fully franked dividends per share of US$4.29 (A$6.42) in FY 2024 and then US$4.55 (A$6.81) in FY 2025. Based on the latest Rio Tinto share price of $130.39, this will mean yields of approximately 4.9% and 5.2%, respectively.

Goldman has a buy rating and $138.90 price target on its shares.

Transurban Group (ASX: TCL)

A third ASX 200 dividend share that could be a buy is Transurban.

It is one of the world’s leading toll road operators, building and operating toll roads in Melbourne, Sydney and Brisbane, as well as in North America. This includes CityLink, Cross City Tunnel, and AirportlinkM7.

Citi is feeling positive about the company and is expecting some good yields from its shares in the near term. It is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.48, this will mean yields of 5.1% and 5.2%, respectively.

Citi has a buy rating and $15.50 price target on Transurban’s shares.

The post Buy Rio Tinto and these ASX 200 dividend shares appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has recommended IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of blue chip shares on the ASX 200 index. But which ones could be buys in May?

Let’s take a look at two shares that are rated as best buys by a couple of leading brokers right now. They are as follows:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that this supermarket giant would be a great ASX 200 blue chip share to buy this month. So much so, the broker has added it to its best ideas list in May.

It believes that recent share price weakness has created a buying opportunity for investors. The broker said:

In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL. While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

Morgans currently has an add rating and $18.95 price target on the company’s shares. This implies potential upside of 15% for investors over the next 12 months. The broker also expects a ~4% fully franked dividend yield from its shares.

ResMed Inc. (ASX: RMD)

The team at Bell Potter has named this sleep disorder treatment company as an ASX 200 blue chip share to buy. Its analysts have ResMed on their Australian Equities Panel. These are the broker’s favoured Australian equities that offer attractive risk-adjusted returns over the long term.

Bell Potter likes the company due to its significant opportunity as a leader in obstructive sleep apnoea (OSA) and other sleep disorders. It said:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

The broker has a buy rating and $36.00 price target on its shares. This suggests potential upside of 9% is possible over the next 12 months.

The post 2 of the best ASX 200 blue chip shares to buy in May appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended Coles Group and ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Top broker Goldman Sachs reckons one of these ASX 200 travel shares could deliver 30% share price growth in just one year.

Let’s review the broker’s latest analysis on Australia’s national carrier and ASX airline share Qantas Airways Limited (ASX: QAN) and global travel agency Flight Centre Travel Group Ltd (ASX: FLT).

Why ASX 200 travel share Qantas is a buy

Goldman has a buy rating on Qantas with a 12-month share price target of $8.05.

The ASX 200 airline share closed at $6.15 on Thursday, down 0.49% for the day.

So, Goldman’s price target implies a potential 31% upside for investors who buy Qantas shares today.

The Qantas share price has lost 2.5% over the past 12 months.

The last piece of price-sensitive news out of Qantas was on 6 May, when the company announced a settlement with the Australian Competition and Consumer Commission (ACCC) over misleading conduct.

Qantas admitted it misled customers by advertising tickets for tens of thousands of flights it had already decided to cancel and cancelling other flights without informing ticketholders in a timely manner.

Qantas will pay a civil penalty of $100 million plus $20 million to more than 86,000 affected customers.

Goldman analysts Niraj Shah and Joseph Kusia say the ASX 200 travel stock is a key beneficiary of the post-pandemic travel recovery.

They expect the airline’s traffic capacity to return to 95% of pre-COVID levels by FY24, with its earnings capacity to exceed pre-COVID levels by about 52%.

They also forecast an approximate 24% FY19-24e cumulative uplift in unit revenues (c. 4.4% pa) and about a 50% drop-through of the company’s $1 billion structural cost-out program.

The analysts concluded the ASX 200 travel share was not appropriately priced by the market, commenting:

QAN’s current market capitalisation and enterprise value are 10% below and 11% below pre-COVID levels. As such, we believe QAN is not priced for a generic recovery, let alone prospects for improved earnings capacity.

We continue to see upside associated with substantially improved MT earnings capacity. 

Some hedge funds have recently targeted the ASX 200 travel stock, driving short-selling to multi-year highs.

Shah and Kusia outline some downside risks for Qantas:

Slower-than-expected traffic recovery; structurally reduced travel demand post-pandemic; irrational domestic market pricing; higher than expected fuel prices and unfavourable fx.

Why Flight Centre shares are a sell

Goldman has a sell rating on Flight Centre with a 12-month share price target of $18.30.

The ASX 200 travel share closed at $20.70 on Thursday, up 0.39% for the day.

So, Goldman’s price forecast implies a potential 11.6% downside for investors who buy Flight Centre shares today.

The Flight Centre share price has lost 3.3% over the past 12 months.

The last price-sensitive news from Flight Centre came on 8 May. The company delivered a new investor presentation and trading update at the Macquarie Conference.

Goldman analysts Lisa Deng and James Leigh said:

FLT provided its trading update for 3Q24 and reiterated group underlying PBT guidance of A$300-340mn for FY24 (A$270 – A$310mn excluding Convertible Note amortisation).

While our calculation of implied 3Q24 numbers suggests that there is slightly below-expectations run-rate in Corporate, this will likely be offset by above-expectations run-rate in Leisure.

Net net, we continue to see recovery and competitive risks in Corporate per our downgrade in March 2024 and our thesis remains unchanged.

However, the analysts can see some upside risks for Flight Centre, including:

Higher Leisure revenue margin on business mix; 2) better-than-expected Corporate traveller and Corporate cost management; and 3) better-than-expected Corporate on market share gains.

The post Buy one, sell the other: Goldman’s verdict on these 2 ASX 200 travel shares appeared first on The Motley Fool Australia.

More reading

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• Short sellers up the ante on Qantas shares
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• These ASX shares could rise 30% to 60%

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a day to remember after softer than expected US inflation put a rocket under the share market. The benchmark index rose 1.65% to 7,881.3 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 poised to fall

The Australian share market looks set to end the week in the red following a subdued session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 35 points or 0.45% lower this morning. On Wall Street, the Dow Jones was down 0.1%, the S&P 500 fell 0.2%, and the NASDAQ was 0.25% lower. The Dow Jones briefly hit 40,000 points for the first time before giving back its gains.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$79.60 a barrel and the Brent crude oil price is up 0.7% to US$84.19 a barrel. Traders have been bidding oil higher in response to falling US inventories and signs that inflation is easing.

Buy Graincorp shares

The Graincorp Ltd (ASX: GNC) share price could be good value according to analysts at Bell Potter. In response to the grain exporter’s half year results, the broker has reaffirmed its buy rating with an improved price target of $9.50. This implies potential upside of almost 17% for investors. In addition, the broker expects a 3.9% dividend yield from its shares. Commenting on the result, it said: “GNC reported a 1H24 underlying NPAT modestly ahead of our expectations at $56.5m (BPe $54.8m).”

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the spot gold price is down 0.45% to US$2,383.8 an ounce. This may have been driven by profit taking following a strong gain this week.

Incitec Pivots shares are a buy

Incitec Pivot Ltd (ASX: IPL) shares can keep climbing according to analysts at Goldman Sachs. In response to its well-received half year results, the broker has reaffirmed its buy rating on the fertiliser and commercial explosives company’s shares with an improved price target of $3.35. It commented: “Solid APAC pricing momentum, Fertiliser sale process ongoing & Transformational program flagged.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Buying ASX 200 energy shares? Here’s the latest IEA oil forecast
• Here are the top 10 ASX 200 shares today
• Why is this ASX 200 stock surging despite a $500 million writedown?
• Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals are rising today
• Graincorp share price lifts off as dividend is maintained and debts plunge

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.